By signing a legal document known as a homestead affirmation, Montanans can secure up to $409,450 (2025) in equity of their home against most unprotected debts.

Equity is the difference between what a proprietor owes on a mortgage and the existing value of the home. For instance, if a homeowner records a homestead affirmation and after that later on sustains overwhelming financial obligations such as medical bills, the owner has security approximately $409,450 (2025) in equity of the home.

Unsafe financial obligation is a commitment or debt without specific property like a house or automobile, serving as collateral for repayment of the debt. Examples of unprotected finances are clinical bills, personal lendings, pupil fundings, and bank card. This MontGuide answers frequently asked questions about a Montana homestead statement.

Just how is ‘homestead’ defined in Montana?

A homestead is the house a person stays in and the arrive at which it stands.by link Montana 34 website The home must be a person’s primary residence to be eligible for a homestead declaration. A mobile home or produced home is likewise qualified for a homestead statement. The proprietor does not have to have the land under which the
mobile or manufactured home is set. Nonetheless, the proprietor needs to stay in the mobile or manufactured home to get approved for a homestead affirmation.

The term homestead also consists of any renovations lawfully specified as ‘appurtenances’ to the land, such as a fencing, separate garage, and wells utilized for domestic water use. However, the enhancements can not surpass the quantity of the homestead declaration exception of $409,450 (2025 ). Furnishings and appliances are not eligible for the homestead statement.

Exactly how is the yearly rise in the Montana homestead affirmation calculated?

The legal worth of the residential or commercial property for figuring the equity held by the owner is the dollar worth appearing on the current area analysis at the region treasurer’s workplace. The 67th Montana Legislature passed a statute calling for the homestead declaration to boost by 4 percent every calendar year after 2021. In 2025, the homestead exemption is $409,450, $425,827 in 2026, and $442,659 in 2027.

Do I require to refile my Montana homestead statement if I submitted one prior to May 10, 2021?

No. The Montana legislature gave increases in the homestead affirmation with the preliminary protection of $40,000. Numerous years later, the quantity was increased to $60,000; then to $100,000, $250,000, and $350,000. Because of the continuing modifications in the homestead declaration, one does
not require to provide the buck amount on the form. The exemption permitted is the amount allowed the year one makes use of the declaration to secure a home from lenders’ insurance claims.

What if the equity in my home goes beyond the Montana homestead exception?

If the worth of equity in a home goes beyond $409,450 (2025 ), financial institutions might request the area court judge to divide (dividers) the land and offer component or all of it. The person that filed the homestead statement has security for the initial $409,450 (2025) in equity of the sale profits. These proceeds are excluded for 18 months from unprotected lender’s cases.

Example: Joe has a home with a worth of $300,000 and a $50,000 mortgage balance. Joe’s homestead statement safeguards only the $250,000 he has in equity ($300,000 worth – $50,000 home loan = $250,000) even though the maximum homestead statement exemption is $409,450 (2025 ).

Instance – Possession: Karen has a home with a value of $425,000 with a home mortgage equilibrium of $10,000. Her equity in the home is $415,000 ($425,000 – $10,000 home loan = $415,000). Karen’s homestead declaration only protects as much as $409,450 (2025) of her equity in the home. The continuing to be amount over the equity she has in the home ($5,550) is available to unsafe financial institution’s insurance claims. Financial institutions might force the sale of Karen’s home to recoup component or all of the financial debt she owes them.

Does the method residential or commercial property is entitled influence the Montana homestead affirmation?

Montanans typically have residential property titled in among three means: sole possession, joint tenancy with right of survivorship or lessees in common. Recently, some Montanans have placed their residential or commercial property in revocable trust funds.

If a proprietor has the title in single possession, the owner has the full $409,450 (2025) homestead exception.

If an individual is a co-owner of real estate entitled as a tenantin-common, each has a concentrated interest in the residential or commercial property as created on the action or otherwise proportional if not especially composed otherwise. If 2 people title their home as tenantsin-common, each owns one-half of the undivided interest in the home. Jim has half ownership and Sally, as the various other tenant-in-common, has the other 50 percent possession.

A deed can show any percentage, such as Jim with 75 percent ownership and Sally with 25 percent or Jim with 60 percent ownership and Sally with 40 percent. When a tenant-in-common documents a homestead declaration, the exception quantity is proportional to the concentrated passion each possesses.

Instance – Lessees in Common: Debbie and Mike have a home as tenants-in-common. The value of the home is $500,000. They have a $50,000 staying balance on the mortgage. Their incorporated equity in the home is $450,000. Debbie has a concentrated interest of half ($225,000) and Mike has an undistracted interest of fifty percent ($225,000). ($500,000 value – $50,000 staying equilibrium on funding = $450,000 combined equity – 2 = $225,000). Mike and
Debbie can each file a homestead declaration for their corresponding concentrated rate of interest of half.

If the title is in joint occupancy with right of survivorship, then any one of the joint proprietors have the full exemption of $409,450 (2025 ). Nevertheless, all owners need to sign the homestead affirmation, actions, and any kind of associated residential or commercial property records such as a home mortgage similarly.

Instance – Joint Occupancy with Right of Survivorship: Heather and Noah own a home with a value of $425,000 as joint tenants with right of survivorship. They authorized the act and title to their home as Heather Ann Mason and Noah Lee Mason. They authorized the homestead statement the same way. They have a $50,000 remaining balance on the home loan. Their joint equity in the home is $375,000 so that is the quantity of equity either Heather or Noah can protect versus unprotected lender insurance claims.

If the title is in the name of a revocable count on the settlors (those who establish the depend on) have the full exemption of $409,450 (2025 ). Settlors are the ones who put properties in the name of the count on. The settlors can consist of a declaration in their statement wording to the following result: We are settlors of a revocable depend on, and we moved the defined home to that count on.

Instance – Revocable Count on: As part of their estate strategy, Cindy and Tom have placed their home in the name of their revocable depend on. The name they picked for the count on is: The Cindy Brown and Tom Brown Revocable count on established June 17, 2025. The worth of the home in the name of the count on is $500,000. Because they have no mortgage, their equity in the home is $500,000. The quantity of equity security they have is the maximum exception of $409,450 (2025 ).

If a couple is wed, should both authorize the Montana homestead declaration?

Yes. Under Montana building legislation, a spouse gets an interest in property at marriage unless an authorized premarital arrangement contract exists. To learn more, see MSU Expansion MontGuide, Premarital Agreement Contracts in Montana: Financial and Legal Aspects or request a duplicate from a local MSU Extension office.

Despite the fact that a partner’s name might not appear on the act or other records of title, the spouse has a lawful interest in the home because of the marital relationship. Therefore, both partners ought to authorize the homestead statement. If one partner does not authorize, that spouse’s interest in the property is not exempt from unprotected creditor’s claims.

Summary

If a Montana property owner submits a homestead declaration, as much as $409,450 (2025) of the house owner’s equity in the home, mobile home or produced home can be secured versus many unsecured lender’s cases. The proprietor finishes, indications, and has the Montana homestead affirmation notarized. The owner then submits the record in the workplace of the staff and recorder in the county in which the home is discovered. If married, both spouses must sign the declaration and physically stay in the home.